The Analytical Overview of the Main Currency Pairs on 2017.10.31

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16063

Open: 1.16492

% chg. over the last day: +0.40

Day's range: 1.16252 – 1.16530

52 wk range: 1.0341 – 1.2069

Yesterday there was a correction on the EUR/USD currency pair. The euro rose against the US dollar by more than 40 points. Investors fixed profit before the Fed's press conference, which will be held on Wednesday, November 1. Currently, EUR/USD is consolidating in the range of 1.16200-1.16600. The trading instrument has the potential for further correction. We expect important economic reports from the Eurozone and the US.

News background on the 2017.10.31:

- The preliminary data on inflation and GDP of the Eurozone at 12:00 (GMT+2:00);

- The consumer confidence index in the US at 16:00 (GMT+2:00).

The indicators don't send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals the purchase of EUR/USD.

Trading recommendations

Support levels: 1.16200, 1.15800

Resistance levels: 1.16600, 1.17000, 1.17350

If the price fixes above 1.16600, we expect a further correction of EUR/USD. The movement is tending to 1.17000-1.17350.

Alternative option. If the EUR/USD quotes overcome the level of 1.16200, it is necessary to search for entry points to the market for opening short positions. The target level of movement is 1.15800-1.15500.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.31275

Open: 1.32065

% chg. over the last day: +0.59

Day's range: 1.31917 – 1.32228

52 wk range: 1.1450 – 1.3618

Yesterday aggressive purchases of GBP/USD were observed. The growth of the quotations exceeded 85 points. The pound recovered most of the losses after a sharp decline last week. At the moment, the GBP/USD currency pair is in a sideways trend. The key trading range is 1.31900-1.32250. The positions must be opened from these marks. We recommend paying attention to the news feed on the US economy.

Today, the publication of important economic reports from the UK is not planned.

The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.31900, 1.31600, 1.31200

Resistance levels: 1.32250, 1.32750

If the price fixes above the "mirror" resistance of 1.32250, we recommend considering buying GBP/USD. The target movement level is 1.32750-1.33000.

Alternative option. If the GBP/USD rate falls below the 1.31900 level, you need to look for entry points to open short positions. The movement is tending to 1.31600-1.31200.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28178

Open: 1.28282

% chg. over the last day: +0.04

Day's range: 1.28228 – 1.28434

52 wk range: 1.2059 – 1.3795

During yesterday's trades, there was weak volatility on USD/CAD. The trading instrument continues to consolidate. Investors took a wait-and-see attitude before publishing the report on Canada's GDP. The key levels of support and resistance are still: 1.28100 and 1.28450 respectively. We recommend you to open positions from these levels.

At 14:30 (GMT+3:00) the statistics on Canada's GDP will appear. It is also necessary to pay attention to the speech of the head of Bank of Canada Poloz.

The signals of the indicators are ambiguous. The price has crossed 50 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are currently no signals.

Trading recommendations

Support levels: 1.28100, 1.27800, 1.27150

Resistance levels: 1.28450, 1.29000

If the statistics from Canada is positive, we expect a correction on the USD/CAD currency pair. The target level of movement is 1.27500-1.27150.

An alternative may be the growth of the USD/CAD quotations to the level of 1.29000-1.29250.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.725

Open: 113.164

% chg. over the last day: -0.62

Day's range: 112.958 – 113.087

52 wk range: 99.53 – 118.67

At the moment, a downward trend is observed on USD/JPY. The pressure on the US currency is caused by a negative dynamics in the US government bond yield. Yesterday, the yen added more than 60 points. The currency found support at the round level of 113.000. The 113.450 mark is already a "mirror" resistance. We are waiting for statistics from the USA.

The Bank of Japan, as expected, kept interest rates at the same level.

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the growth of USD/JPY.

Trading recommendations

Support levels: 113.000, 112.500

Resistance levels: 113.450, 113.800, 114.200

If the statistics from the US turns out to be weak, we expect a further drop in USD/JPY. The movement is tending to 112.500.

An alternative may be the growth of the USD/JPY currency pair to the level of 113.450-113.800.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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